SEC gears up for more private sector participation

20 February 2004
Saudi Electricity Company (SEC)plans to bring in private sector investment into 10 transmission and 11 generation projects, including the four planned independent water and power projects (IWPPs) in the Eastern Province and Western Region over the next three years. Under the SEC programme, the first transmission project with private participation is due to be completed as early as 2007. Total investment in the transmission sector is estimated to reach at least SR 6,405 million ($1,708 million) between 2006-17, while power generation will require investment of about SR 40,000 million ($10,800 million) over the same period (MEED 16:1:04).

On the transmission side, a total of 3,860 kilometres of new transmission lines will be added, according to SEC. The first project to be offered on a build-operate-transfer (BOT) basis for a period of 15 years will be the first phase of the 380-kV southern interconnection.

The scope of works will cover the construction of a 110-kilometre link between Shuqaiq power plant and Sabya substation. Nine other transmission projects will be offered to private sector participation between 2008-14 (see table 1).

On the generation side, SEC will require investment of SR 13,000 million ($3,500 million) to install 6,100 MW of new capacity between 2006-11. Another SR 27,000 million ($7,300 million) will be required to raise generation capacity by a further 14,175 MW between 2011 and 2017.

The first power project to be offered solely by SEC on a BOT basis will be a 1,725-MW power plant at Muzahimiyah in the central region.

The plant will require an investment of about SR 2,800 million ($750 million) and is due to come on stream in 2011.

The largest BOT power project will be the 3,600-MW Qurayyah II power plant in the Eastern Region, which is due to be completed in 2012 and is estimated to require investment of SR 7,200 million ($1,900 million - see table 2).

Requests for proposals (RFPs) for the kingdom's first IWPP at Shouaiba in the Western Region are due to be released to prequalifiers very soon. It will be implemented by SEC and the Saline Water Conversion Corporation (see table 3; MEED 9:1:04).

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